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AGL breaks fracking pledge

Ben Cubby, Esther Han

FRACKING is back on the table for western Sydney after the coal seam gas company AGL reversed a pledge not to use the controversial drilling technique in the suburbs.

The company told Fairfax Media unconditionally on December 27 that it would not use fracking, a drilling method linked to water pollution, in its planned 66-well drilling program between Liverpool and Campbelltown.

Its assurances prompted the Premier, Barry O'Farrell, to defend AGL's promise not to frack and downplay any impacts of the project on the thousands of residents who live near drilling sites.

But AGL has now backtracked after internal discussions revealed the company would have to change the drilling plans it has already submitted to the state government. It now says it would prefer to use a ''horizontal drilling'' technique to extract gas, but reserves the right to revert to ''vertical drilling'' which would lead to ''well stimulation'', or fracking.

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''AGL's position remains consistent that drilling vertical wells … remains unlikely, however if any vertical well is drilled in the future, such a well will likely require fracture well stimulation to promote the flow of natural gas,'' a spokeswoman said.

The NSW Greens accused the company of lying to residents about its plans.

''Fracking in urban areas is a risky proposition that could pollute the air and water with methane, other gases and fracking chemicals, posing a risk to health and the environment,'' the Greens MP Jeremy Buckingham said. ''The people of western Sydney should not be used as guinea pigs in AGL's fracking experiments. AGL have admitted fracking 75 per cent of their existing wells [outside urban Sydney] and the permeability of the coal seams means they always needed to frack. They have now been caught in a lie.''

Fracking, or hydraulic fracturing, involves pumping a mix of water, sand and chemicals underground at high pressure, to force more gas to the surface. Opponents say the practice can cause gas leaks, damage aquifers and pollute water with its mix of potentially toxic chemicals.

However, it is favoured by drilling companies at some sites because it usually extracts more gas - and makes more money - than conventional drilling.

The decision on whether to frack wells in western Sydney will now be made on a case-by-case basis, depending on geological and environmental conditions, the company said. It said it had reversed its stance on fracking in the interests of transparency.

"The CSG industry has some of the country's most stringent environmental and safety regulations that AGL must adhere to and we are committed to meeting all of these,'' a spokeswoman said.

About 10,000 homes in the proposed drilling area, covering suburbs such as Currans Hill, Varroville, Kearns, Eschol Park and Denham Court, have been notified of the company's plans by newsletters. It has promised there will be no effects at the surface from its underground drilling.

The company's public change of position followed pressure from residents, who are concerned about the potential effects on human health, and property values, in their suburbs.

John Fraser, 61, moved to his home on Chasselas Avenue in Eschol Park 12 months ago for some ''peace and fresh air''.

But now he faces the prospect of coal seam gas trucks and industrial rigs regularly using his street and nine months of noisy drilling if the AGL project goes ahead, he said.

''I'm very disappointed by the O'Farrell government [which] has not done anything to protect residents,'' said Mr Fraser, a member of the local residents group, The Scenic Hills Association.

His street will be one of the most affected as it sits near the proposed coal seam gas well CU26 cluster, planning documents show.

The group Doctors for the Environment has also raised concerns about the health effects of drilling in urban areas. NSW Health is reviewing the case and will make a submission to the government on AGL's plans, which are open to public submissions until February 8.